The Government plans to continue investing heavily in infrastructure in the future. This is reflected in the Strategic Infrastructure and Transport Plan for 2005-2020⁸, the greatest infrastructure commitment ever made by the Spanish Government. This has provided investment totaling over 248,000 million euros. Rail transport is the main item in the Plan, accounting for nearly 50% of the investment.

The motorway network, totaling nearly 11,000 km, has undergone continuous renovation to enhance efficiency and convenience. The Government investment plan will result in over 15,000 km of motorway network, which will provide direct access to the provincial capitals putting 94% of the population within fewer than 30 kilometers of a motorway.

As far as rail transport is concerned, Spain has a network of over 15,000 km of track. High-speed train lines have become a priority for the Government infrastructure plans and it is expected that in 2020 the high-speed train network will span 10,000 kilometers. Connections already exist between Madrid-Seville, Madrid-Lerida and Madrid-Tarragona. As a consequence, all principal Spanish cities will have direct access to this network and 90% of the population will be within fewer than 50 kilometers of one of its stations.

Moreover, Madrid will very soon be connected by high-speed train to the French border via Zaragoza (Aragón) and Barcelona (Cataluña) and additionally via Vitoria and Irún (Basque Country). In fact, the section Madrid-Guadalajara-Zaragoza-Lérida opened in October 2003 and it is planned the possibility of allowing a private company to create and exploit another international section, Figueras-Perpiñán. Additionally, the section Córdoba-Antequera with more than 100 new high speed kilometres has been opened as from December 2006; by this way, it is foreseen that Madrid will be connected to the Costa del Sol in 2.5 hours by the end of 2007.

Finally, it is worth noting that the freight sector was liberalized in January 2005.

There are air transport services between the main cities. Approximately 250 airlines with scheduled flights operate from the country's 49 airports and connect Spain with the principal cities in the world. Spain is an important hub for connections between Latin America and Europe and lies in a crucial position in the network to America and Africa from Europe. The main investments in this area will be made in the two principal international airports, located in Madrid and Barcelona. The Madrid airport has increased its capacity to 70 million passengers a year since Terminal 4 opened in February 2006, and is recognized as the twelfth airport in the world (in terms of number of passengers) by the Airports Council International. Improvements at Barcelona airport will allow 90 flights per hour and the ability to handle 40 million passengers a year. Related to the Strategic Infrastructure and Transport Plan for 2005-2020, the Government has announced the implementation of the "Plan Canarias", which provides for investment in the Canary Island airports amounting to almost 3,000 million euros⁹.

Spain also has excellent sea communications, with 53 international ports on the Atlantic and Mediterranean coasts. The Strategic Infrastructure and Transport Plan expects to increase the Spanish ports capacity by up to 75%, consolidating their role as intermodal nodes, by 2020.

Spain is also well equipped with industrial land and technological and industrial infrastructure. In the last few years, technology parks have proliferated in the main industrial areas and near universities and R&D centers. There are currently 70 technology parks¹⁰ (24 of them fully operating). In these technology parks there are more than 2,000 companies mostly dedicated to the computer sector and telecommunications; approximately, 20% of the total number of workers of said companies are involved with R&D activities.

R&D expenditure has risen significantly in recent years. In 2006 the R&D Budget has increased by 30% an increase expected to reach 33% in 2007. Additionally, the previously mentioned special R+D Fund of 2,000 million euros approved in the last European Council of London will further increase expenditure in R&D.

With a view to achieving new goals, the government has created the new INGENIO 2010 Program, which aims to achieve a situation where public and private investment in R&D&I is equal to 2% of GDP in 2010 and where private sector investment accounts for 55% of that investment in that year.

Moreover, Spain has a good telecommunications network. In addition to the extensive fiber optic network (64,000 km) which covers almost all the territory, Spain manages one of the largest international undersea cable networks and has satellite connections with the five continents. In this respect, it is worthwhile mentioning the strong liberalization process undertaken in most industries, including the telecommunications sector, well within the European schedule. Among other benefits, this implies a more competitive and cost effective offering of this type of services, essential for appropriate economic development.

Last, it is worth noting the significant investments made in hydraulic infrastructures, which have improved the possibility of guaranteed water availability.

⁸ www.mfom.es
⁹ www.aena.es (press release).
¹⁰ www.apte.org